GBP/JPY is under pressure and expected to prevail its downside movement. The pair recorded a succession of lower tops and lower bottoms since Dec 16, which confirms a negative view. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is capped by a bearish trend line and is below its neutrality level at 50. As long as 146.55 is resistance, look for a further drop toward 144.90 and even 144.50 in extension.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 144.90. A break below this target will move the pair further downwards to 144.50. The pivot point stands at 146.55. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 147.30 and the second one at 147.65.
Resistance levels: 147.30, 147.65, 148.15
Support levels: 144.90, 144.50, 144.00
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2h59AS3
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